New Delhi: The finance ministry is considering several steps like dipping into other accounts of a cheque issuer and prohibition of opening of new accounts of offenders to effectively deal with cheque bounce cases which are clogging the legal system.

Several suggestions were made at a high-level meeting recently called by the ministry to deal with the high incidence of cheque bounce cases. Some of the steps suggested before taking legal recourse included debiting another accounts of the cheque issuer if his or her account is short of funds to honour the instrument, sources said. The other suggestions were treating cheque bounce as default of loan and thus reporting it to credit information companies for necessary downgrade of score, the sources said, adding a proper legal view would be taken before these suggestions are accepted.

If these suggestions are implemented, it would help enforce cheque honoring by the payer without the matter going to court and also compel him/her to make payment by creating a deterrent through technology.

These measures would help promote ease of doing business and dissuade people from willfully indulging in issuance of cheques even though their accounts have insufficient funds. Proposed steps could be implemented through the integration of data across the banks, sources said. Standard Operating Procedure (SOP) for auto debit and other suggestions would also be required.

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